PIVOT, RESISTANCE & SUPPORT
Lets understand about Pivot, Resistance & Support (The three Pillers of Chart Analysis).
*Yellow doted line is a Pivot Line.
*Upper Purple Line is a Resistance Level.
*Bottom Purple Line is a Support Level.
This Pivot, Resistance, Support, Yesterday High & Yesterday Low.....all levels help you to understand the Trend of the Stock.
There are some rules to understand that....
Rule 1: Market Goes Up :
If
the market opens above the Pivot Level & below the Resistance Level or Yesterday High with Green Candle. Its
target is next upper level that is Yesterday High or Resistance Level.
Rule 2: Market Goes Down :
If the market opens below the Pivot Level &
above the Support Level or Yesterday Low with Red Candle. Its target is next lower level that
is Yesterday Low or Support Level.
Rule 3: Unpredictable Market:
- Case 1 : If the market opens above the Pivot Level with Red Candle then avoid trading on such conditions.
- Case 2 : If the market opens below the Pivot Level with Green Candle then also avoid trading on such conditions.
To know more......Tradewinx.
